FSBOs accounted for 8% of home sales in 2014. The typical FSBO home sold for $210,000 compared to $249,000 for agent-assisted home sales. This is from NAR statistics.
There are two simple reasons why there is such a big difference in the average sales price.
First, the buyer pool is smaller. You are effectively shut out from most of the potential buyers.
Ten years ago 8 out of 10 buyers hired an agent to help them purchase a home. Today 9 out of 10 buyers will hire an agent. Real estate transactions get more complicated everyday. Most buyers are not comfortable dealing and negotiating directly with a home seller. Even most agents are not comfortable dealing directly with the seller. That’s because they are usually dealing with a novice home seller and know they would end up doing twice the work for the same money. Buyers working with agents rarely view For Sale by Owner listings.
You will get plenty of agents that will claim they will bring buyers to you, but don’t expect very many. They assume too much risk the buyer will go around them to “save the commission”. I’ve had it happen to me. Only showing listed homes greatly reduces that possibility.
Second the buyers that are attracted to For Sale by Owners are mostly bargain hunters and investors.
They seek out For Sale by Owners precisely because they know you aren't paying a commission and they figure they can get the entire savings. You don’t have to take my word for it. If you have fielded any offers yet, you know what I’m talking about. The reality is the buyer actually pays for the commission. They just don’t know it. It ends up being built into the price.
Related:
FSBO Tips From A Pro - A Guide to Selling Your Home on your Own
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